Free Issue No. 02 from 16.01.2020
The SWATCH GROUP watch and jewellery group, which is estimated to generate around 50% of its sales with Chinese customers, was one of the victims of the trade dispute between the USA and China last year. customers, was one of the sufferers last year from the US-China trade dispute and the ongoing protests in Hong Kong. While these geopolitical flashpoints dampened investor sentiment, SWATCH GROUP has not been idle, and various initiatives have been or are being launched to get the business backon track.
SWATCH GROUP has taken countermeasures with regard to the development of costs (especially personnel costs).While the top two price segments are generally doing well, as evidenced by the monthly watch export data While the top two price segments are generally doing well, as evidenced by the monthly watch export data, there is indeed sand in the gears in the lower two price segments. However, this has less to do with the trade war or the protests in Hong Kong than with changes in consumer behaviour. SWATCH GROUP has responded to this by increasing its presence on the Internet. In addition, with the planned Tissot smartwatch, the western Swiss company also wants to cover part of the lucrative market for intelligent watches, which today can do more than simply tell the time. Monitoring the human body (e.g. in the fitness sector) is a particularly big topic. For SWATCH GROUP, however, the top two price segments, which account for around 80% of sales, remain decisive for the match. An important driver is the growing middle class in Asia, which can increasingly afford to wear status symbols from Omega, Tissot, Longines or Breguet - these brands are part of SWATCH GROUP's product portfolio - on their wrists. SWATCH GROUP'sregistered share is a classic quality stock (debt-free balance sheet!), which has seldom been as cheap as it is now. If you have enough seat leather and are not distracted by the news surrounding the trade dispute, you can remain invested or position yourself here with peace of mind.
Target price CHF 80!
